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true its a free market economy and their are market forces at play.
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One result of which is the mismatch between central bank rates and bank rates for mortgages. Obviously banks like having lending rates as high as possible as this means £££. However, a competitive market means they can't jack them too high without the customers upping and leaving for the guy next door.
What's happening now is that there are quite a lot of people (me, for instance) seeking remortgages but a lot of banks are shutting the door on new loans until they figure out what's happening. This is great news for the really big operators like HSBC who still have wads of cash lying around, as they can now lend it to the best risks at high rates, thus locking in a few years decent profit.
So, don't feel too sorry for the banks, the 'free market' means they'll gain on the down as well as the up. I'm just glad we got our deal signed and sealed weeks ago - the rate's gone up 0.56% since then and the fee's nearly doubled.